Credit Spread

A credit spread is a two-leg vertical: sell a closer-to-the-money option, buy a further OTM option of the same type. You collect a credit on entry. The long wing caps your maximum loss. Iron condors are two credit spreads on opposite sides of price. ACondor's mechanical engine enters iron condors by default; when a directional bias exists, it may enter a single-sided credit spread instead.

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This site provides general information about ACondor, a software tool for automating options trading strategies. Nothing on this site is investment, tax, or financial advice. Options trading involves substantial risk of loss. Past behavior of any strategy does not guarantee future results. Consult a licensed financial professional before trading options. ACondor may earn a commission from affiliate links at no extra cost to you.